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Alphabet (GOOGL) Registers a Bigger Fall Than the Market: Important Facts to Note
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Alphabet (GOOGL - Free Report) ended the recent trading session at $247.14, demonstrating a -1.8% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Shares of the internet search leader have appreciated by 21.49% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.98%, and the S&P 500's gain of 3.08%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. On that day, Alphabet is projected to report earnings of $2.3 per share, which would represent year-over-year growth of 8.49%. Alongside, our most recent consensus estimate is anticipating revenue of $84.53 billion, indicating a 13.39% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.97 per share and a revenue of $334.62 billion, indicating changes of +24% and +13.38%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% downward. As of now, Alphabet holds a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 25.25. For comparison, its industry has an average Forward P/E of 25.29, which means Alphabet is trading at a discount to the group.
It's also important to note that GOOGL currently trades at a PEG ratio of 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.7 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Alphabet (GOOGL) Registers a Bigger Fall Than the Market: Important Facts to Note
Alphabet (GOOGL - Free Report) ended the recent trading session at $247.14, demonstrating a -1.8% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Shares of the internet search leader have appreciated by 21.49% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.98%, and the S&P 500's gain of 3.08%.
Market participants will be closely following the financial results of Alphabet in its upcoming release. On that day, Alphabet is projected to report earnings of $2.3 per share, which would represent year-over-year growth of 8.49%. Alongside, our most recent consensus estimate is anticipating revenue of $84.53 billion, indicating a 13.39% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.97 per share and a revenue of $334.62 billion, indicating changes of +24% and +13.38%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alphabet. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% downward. As of now, Alphabet holds a Zacks Rank of #3 (Hold).
In terms of valuation, Alphabet is currently trading at a Forward P/E ratio of 25.25. For comparison, its industry has an average Forward P/E of 25.29, which means Alphabet is trading at a discount to the group.
It's also important to note that GOOGL currently trades at a PEG ratio of 1.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.7 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.